TO: | Honorable Harold V. Dutton, Jr., Chair, House Committee on Juvenile Justice & Family Issues |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB1461 by Eiland (Relating to mandatory paternity testing before a court may render an order for child support.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($966,975) |
2005 | ($1,484,013) |
2006 | ($2,001,055) |
2007 | ($2,518,107) |
2008 | ($2,935,169) |
Fiscal Year | Probable (Cost) fromGENERAL REVENUE FUND 1 |
Probable Revenue (Loss) fromCHLD SUPPORT RETAINED COL 787 |
Probable Revenue Gain/(Loss) fromFEDERAL FUNDS 555 |
Probable (Cost) fromFEDERAL FUNDS 555 |
---|---|---|---|---|
2004 | ($630,000) | ($336,975) | ($696,985) | ($5,670,000) |
2005 | ($630,000) | ($854,013) | ($2,217,685) | ($5,670,000) |
2006 | ($630,000) | ($1,371,055) | ($3,738,397) | ($5,670,000) |
2007 | ($630,000) | ($1,888,107) | ($5,259,138) | ($5,670,000) |
2008 | ($630,000) | ($2,305,169) | ($6,779,909) | ($5,670,000) |
Fiscal Year | Probable Revenue Gain fromFEDERAL FUNDS 555 |
---|---|
2004 | $5,670,000 |
2005 | $5,670,000 |
2006 | $5,670,000 |
2007 | $5,670,000 |
2008 | $5,670,000 |
It is assumed that child support could no longer be established through an administrative review process or default orders. The Office of the Attorney General (OAG) estimates an increased case processing time that would result 7,715 fewer child support orders per year. The impact would be cumulative. The average child support monthly collection is $358. It is assumed that collections would be made in 60% of these cases. The OAG estimates decreased child support that would have been collected on behalf of families totalling $9.1 million in FY 2004, $28.3 million in FY 2005, $47.6 million in FY 2006, $67 million in FY 2007, and $86.3 million in FY 2008. The state would have retained 2.6% of the total collections; this is reflected as a revenue loss to retained collections and a loss of federal matching funds.
The OAG also estimates that the state's award of federal performance incentive payments would be reduced as a result of the reduction in child support orders by $100,000 per year.
The OAG estimates that an additional 40,000 cases would require paternity testing under the proposal at a total cost of $6.3 million in all funds per year. The state share is $630,000 per year.
Source Agencies: | 212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General
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LBB Staff: | JK, JO, GO, KE, AJ
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